General Corporation owns equipment which cost $70,000 and has a $44,000 adjusted basis. General exchanges the equipment

Question:

General owns equipment which cost $70,000 and has a $44,000 adjusted basis. General exchanges the equipment for other equipment ($42,000 FMV) and marketable securities ($30,000 FMV). Determine the following:
a. Realized gain
b. Recognized gain
c. Gain treated as ordinary income
d. Gain treated as Sec. 1231 gain
e. Basis of marketable securities received
f. Basis of equipment received Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...